Wording for starter checklist for April 2016 announced

From 6th April 2016, the starter checklist will be amended to accommodate the fact that Plan 2 students will come into payroll repayment for the first time. As there will now be two thresholds in payroll software, employers need to know which applies when someone changes jobs. A Plan 1 student took their loan out before September 2012 and currently repays when Ni’able pay exceeds £17,335 (this will rise in April 2016 but the threshold has not yet been announced). Plan 2 students took their loans out from September 2012 onwards and repay when Ni’able pay exceed £21,000. P45s will still only show a Y in the student loan box, as HMRC have no money to amend it as the form will soon be abolished, so without all new starters completing a starter checklist the employer won’t know which threshold to apply. If the student presents a P45 with a Y but the starter checklist has nothing completed, then the employer defaults to Plan 1 and awaits confirmation that is correct from HMRC via an SL1 starter notice. From April, the SL1 starter notice can also act as a switch notice (from 1 to 2 or vice versa).  Since the advent of RTI, employers should ask all new starters to complete a starter checklist even if they present a P45, and this becomes even more vital from April. The new wording is as per this announcement from HMRC’s software developer’s support team:

1. I have a Student Loan which is not fully repaid
Yes (insert radio button)              No (insert radio button)
If you answer yes to statement 1, please go on to statement 2.
2. I am repaying my Student Loan direct to the Student Loan Company by agreed monthly payments and my employer shouldn’t deduct loan repayments from my pay.
Yes (insert radio button)              No (insert radio button)
If you answered yes to statement 2, you do not need to answer statements 3 or 4.
3. I have a Plan 1 Student Loan
Yes (insert radio button)              No (insert radio button)
You will have a Plan 1 Student Loan if:
•              You lived in Scotland or Northern Ireland when you started your course, or
•              You lived in England or Wales and started your course before 1 Sept 2012.
4. I have a Plan 2 Student Loan
Yes (insert radio button)              No (insert radio button)
You will have a Plan 2 Student Loan if:
•              You lived in England or Wales and started your course after 1 September 2012.
5. I finished my studies before the last 6 April
Yes (insert radio button)              No (insert radio button)